Jimmy Deenihan (Kerry North, Fine Gael)

In October 2007 a state-of-the-art child centre facility was opened in Ballybunion, County Kerry at a cost of €682,400. Additional funding was provided for equipment and facilities in the centre, bringing the total investment to approximately €800,000. The money was provided by the Department of Justice, Equality and Law Reform under EOCP funding and the project was five years in gestation and involved a considerable amount of voluntary input from local parents and members of the community. The centre received a grant initially, which was a contribution towards its staffing costs. This money was granted through the old scheme, which will be finished by the end of June and is to be replaced by a new system known as the community child care subvention scheme. Under this scheme the level of grant aid will be based on the number of disadvantaged parents using the service as well as the level of service. In return, the centre is expected to discount its fees by the amount of subvention it receives for each qualifying parent. Under the scheme disadvantaged parents are categorised as those in receipt of social welfare payments, on community employment schemes or family income supplement.

There are four subvention levels. Band A includes social welfare recipients and band B family income supplement, FIS, recipients. The people who do not fall into either category are in band D, and these are in full-time employment. They are not subsidised and have to pay the full costs. In response to the outcry from parents and child care providers when the new scheme was proposed originally, the OMC put band C in place, which offers reduced fees to people on low incomes who are marginally above the FIS threshold. As a result of the new changes, the people in employment — most of whom must travel 20 miles to Tralee or Listowel to work — will now have to pay €180 for a place. It was €120, so this is an increase of €60, which is considerable, for a full place. Also there is an increase from €45 to €90 for a preschool place — and the equivalent for shorter hours. There are few families in the locality in a position to pay this type of fee, so that the whole system including the staffing of the centre will not be sustainable.

The parents in band D who have contacted me will have to leave their children at home to be looked after by childminders. They might be able to pay a lesser rate to grandparents, perhaps, or in-laws, but it is not satisfactory because this particular centre is one of the finest of its type in the country. I do not know whether the Minister of State, Deputy Hoctor or her colleague, the Minister of State, Deputy Andrews is responsible for it. It is very progressive as regards the initiatives being pursued and those it has introduced. For example, there is an initiative entitled "Learn through Play", which is based on the Department of Education and Science's new curriculum, and it is operated very successfully. The parents, however, are now looking at the prospect of not being able to afford the child care payments. As I said, they have few options — either to leave the child or children at home or give up their jobs to get back on a qualifying band. It does not appear to make any sense, whatsoever.

I do not know what type of response the Minister of State will give. I asked a former Minister of State, Deputy Brendan Smith, to visit the centre and even officially open it and use it as an example of how other centres might operate. It does not make sense that a centre opened last October at a cost of €800,000 could now close this October. A survey has shown that the profile of those due to avail of the centre next October are mostly in employment, so they will not receive subsidies. The Acting Chairman will appreciate this.

This is just the first of many stories that will be raised in this House. I know that for a fact because there are similar child care facilities across the country that face this type of problem, and it has not struck home yet. Obviously, Deputies have not been contacted to date. Certainly, this is something that must be addressed. I look forward to the Minister of State's response and I hope she can offer some solution. Otherwise there will be a major problem and it will leave a significant deficit in child care facilities right across Ireland.

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